Just the country is developing, so is the real estate market. Altogether both are in the positive direction, but the demonetization has caused some damage to this development. Big developers like Indya Estates have survived the damage without much hassle, but the small-scale developers had to suffer due to this move made by the government. In the real estate market, the organized players have continued their pace with transparency and integrity. They are all ready to suffice the future demands of apartments, properties and plots of their customers. Customers who could only afford apartments through bank loans had an opportunity to buy their dream apartment. As demonetization blocked the free flow of cash, most transactions were carried out directly by banks. This prevented the foul play game in the real estate market. Over all one can take it as a positive sign not only for the economy but also for the retailers.
Property prices in Bangalore after demonetization were not affected much as the leading developers reported an increase in their operational revenue in the financial year 2016-2017. The developers have benefited from the drop in the interest rates of property purchase. The reduction in interest rates has increased the demand for new property purchases. Buyers are looking at the real estate market with a positive outlook than before.
- Brigade – Revenue increased by 11%
- Prestige – Revenue increased by 5.5%
- Puravankara – Revenue increased by 17.4%
- Sobha – Revenue increased by 6.2%
Demonetization had its pros and cons, the cons in terms of the real estate market were in the resale of property segment. For resale, a huge amount of cash is involved, and demonetization had ceased the flow of cash. The role of unaccounted cash was termed void and caused a lot of distress in this segment of real estate market. Some of the areas of Bangalore which had been affected by demonetization are:
- BEML Layout – The price of land per sq. Ft ranges from 3995 to 4505, and a drop of 4.76% had been witnessed in this area after demonetization.
- Basaveshwara – Here, per sq. Ft of land ranges from 5355 to 6502. The price of per sq. Ft of land dropped by 8% after demonetization.
If the entire real estate market is taken into consideration, then there wasn’t much damage caused by demonetization, but the one segment of resale was affected by it in Bangalore.
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